US STOCKS-Wall St eyes weaker open on escalating trade concerns

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* U.S. looking to limit capital flows to China - BBG
* China tones down expectations ahead of trade talks - SCMP
* Washington expands blacklist on Chinese firms
* Boeing falls on fresh worries over 737 MAX
* Futures down: Dow 0.68%, S&P 500 0.64%, Nasdaq 0.63%

(Adds comments, updates prices)
By Shreyashi Sanyal
Oct 8 (Reuters) - Wall Street was set to open lower for the
second straight session on Tuesday, after a report that the
Trump administration was moving ahead with discussions around
possible curbs on capital flows into China stirred up fresh
worries over the outcome of the high-level trade talks later
this week.
The report came as tensions escalated after the U.S. widened
its trade blacklist to include Chinese video surveillance firm
Hikvision 002415.SZ and surveillance equipment maker Zhejiang
Dahua Technology 002236.SZ among others, drawing a sharp
rebuke from Beijing. The discussions on capital flow restrictions focused on
investments made by U.S. government pension funds, Bloomberg
reported on Tuesday. Adding to the pessimism, a South China Morning Post report
said China had toned down its expectations ahead of the
high-level trade talks set to begin on Thursday and that the
Chinese delegation could depart Washington a day earlier than
planned.
"I don't think there's really much hope that we are going to
see a completed deal any time soon," said Scott Brown, chief
economist at Raymond James in St. Petersburg, Florida. "For
markets, it may be enough to just see a stop in the escalation."
The U.S. action pressured suppliers to the Chinese firms.
Intel Corp INTC.O and Nvidia Corp NVDA.O fell about 1% in
premarket trading, while Ambarella Inc AMBA.O slumped 12%.
Dow .DJI heavyweight Boeing Co BA.N fell 1.5% after the
Wall Street Journal reported friction between the United States
and Europe could further delay efforts to resume flights of the
planemaker's best-selling 737 MAX jets, which have been grounded
since early 2019.
The three main indexes logged their first fall in three
sessions on Monday as investors tackled mixed headlines on
U.S.-China trade. Risk appetite has also been hit by weak
economic indicators last week and intensifying efforts to
impeach President Donald Trump.
At 8:14 a.m. ET, Dow e-minis 1YMcv1 were down 181 points,
or 0.68%. S&P 500 e-minis EScv1 were down 18.75 points, or
0.64% and Nasdaq 100 e-minis NQcv1 were down 48.75 points, or
0.63%.
The benchmark S&P 500 index .SPX is now about 3% off its
record high hit in July.
Market participants will now turn their attention to the
third-quarter earnings season beginning next week for evidence
of the impact of the trade war on corporate America.
Analysts expect the worst quarterly profit performance since
2016, with earnings from S&P 500 companies declining nearly 3%
from a year earlier, based on IBES data from Refinitiv.
Among other stocks, Nektar Therapeutics NKTR.O slid 6.1%
after Goldman Sachs downgraded the drug developer's stock to
"sell." U.S.-listed Chinese stocks also declined, with Alibaba Group
Holding BABA.N , JD.com Inc JD.O and Baidu Inc BIDU.O down
between 2% and 2.6%.